British Gas owner Centrica sees profits of £2.8BILLION after Ukraine war - huge surge on previous year

British Gas owner Centrica has announced a surge in profits to £2.8billion in 2022 - up from £392million the year before.

The huge increase comes in the aftermath of war in Ukraine with gas and oil companies across the sector having announced record profits, despite households facing high energy bills.

Russia's invasion led to a ban on the import of gas and oil from the country, increasing the whole sale price of imports from elsewhere.

While Centrica saw record profits at an international level, the firm saw a decrease of 39 per cent in its British Gas retail division.

The record profits come despite households grappling with surging energy bills
Philip Toscano

British Gas Energy made operating profits of £72million.

Last year the Government introduced a one-off windfall tax on energy companies in order to help subsidies the rise of household energy bills.

The levy was only applicable to the profits made by the companies' UK divisions, meaning the soaring profits made internationally were not included.

Responding to Centrica's profits, shadow climate secretary Ed Miliband hit out at the Government as he promised that Labour would introduce a “proper” windfall tax on energy companies.

“It cannot be right that, as oil and gas giants rake in the windfalls of war, Rishi Sunak’s Conservatives refuse to implement a proper windfall tax that would make them pay their fair share,” he tweeted.

“Labour would use a real windfall tax to stop the energy price cap going up in April.”

Meanwhile Liberal Democrat Leader Ed Davey MP said: "This is a betrayal for British Gas customers across the country who are struggling to keep their heating on.

Labour's Ed Miliband called for a 'proper' windfall tax to be implemented
House of Commons

"Once again the Government's failure to implement a proper windfall tax is allowing oil and gas businesses to make billions off the back of hardworking families."

He also demanded the Government scrap the planned £500 increase in the cap on household energy prices due to come into effect in April.

Centrica said it paid nearly £1billion in tax relating to 2022 profits.

But it also revealed it handed out bumper returns to shareholders, with plans to boost its share buyback programme by another £300million and paying out a full-year dividend of 3p a share.